Bitcoin home mining is enjoying a surge in popularity right now as budding bitcoiners recognize all of the positive side effects of home mining: home heating, greenhouse projects, and part of the bitcoin revolution.
Towards the end of 2021, Bitcoin Magazine asked some companies in the Bitcoin mining space to get a feel for how the market for ASICs was changing and what to expect by 2022.
2021 was a big year for bitcoin mining, largely because about 40% of the mining hashrate disappeared after the China ban and reappeared in places like Kazakhstan, Siberia, and Texas. A recent report suggests that nearly 20 percent of the hashrate of Bitcoin networks is still in China, some of it in the form of home mining rigs.
Meanwhile, the demand for ASICs from potential home miners in North America is growing rapidly. For 2022, there is consensus among companies providing mining services that two things like death and taxes are certain:
- The demand for ASICs will continue to grow, particularly in the home mining sector.
- Supply chain issues will be the biggest challenge facing the ASIC and infrastructure market in 2022.
Luxor technologies, a Seattle-based mining pool, is expanding its secondary business (securing ASICs) to meet growing demand for smaller quantities of single-user home / garage equipment.
In a recent interview with Bitcoin Magazine, Ethan Vera, CFO of Luxor told us:
“Luxor is working with an increasing number of artisanal miners to acquire ASICs at competitive prices. Our goal is to give retailers access to machines at the same price as institutions. We expect retail to be a significant part of our volume, ”he said.
“We currently have over 3,000 miners in our pool, some of whom are large institutions, but many are small-scale miners. We think it is incredibly important to support this part of the industry and will continue to offer products that retailers can access, ”he added. “73% of the miners on Luxor’s platform work with less than 1,000 TH / S on their account. Some of these miners can host in colocations, but many of them mine at home. “
According to Vera, there will be delivery delays of two to three weeks until 2022. To resolve delays in the supply chain, Luxor has set up an “ASICs boutique” in China, whose employees work in Asia to set device orders in motion.
Compass mining Specializing in hosting and other services for miners, the company is riding a wave of demand for home mining equipment.
A combination of increased demand for ASICs and infrastructure and global supply chain delays created a difficult year, confirms Compass CEO Whit Gibbs.
On a recent podcast, Gibbs said, “I love my customers,” as he thanked them for their patience as some of them had waited more than four months for new equipment and placements.
Compass has launched a secondary sales platform for individual miners, an eBay of ASICs, to try to meet some of the demand for equipment. Compass will build its new headquarters in Austin, Texas by 2022.
We asked Gibbs if he saw the demand for home mining services continue to grow in the new year:
“Mining is still very profitable and I see the home mining trend continuing as long as it is. If the hash rate / difficult goes up and profitability goes down, the growth in home mining will decline and only the die-hard bitcoiners who crave self-sovereignty (and KYC-free bitcoin) will continue to run rigs at home. “
Upstream data based in Northern Alberta, Canada, has responded to the rapidly growing interest in home mining with their Black Box product, which can be sized for 2 to 2 dozen and was designed by CEO Steve Barbour.
The orders for the Black Box, which will debut in 2021, are increasing:
Upstream Data is best known for its innovation in capturing emissions from the oil and gas industry, using captured methane and flared natural gas to power mobile Bitcoin mining rigs. Barbour sees an opportunity to decentralize mining and spread the bitcoin mining issue at home.
“Home mining is not a passing fad, it is a growing sector and will likely be the largest hash power mining sector to use in the future,” Barbour told Bitcoin Magazine in a recent interview.
Upstream started small in 2017 and built a supplier network that gives them a head start in the current situation in the supply chain.
However, on a recent podcast, Barbour noted that like other companies, he is still struggling with delivery issues. As an example, he said that up until now he had not had any problems getting aluminum profiles for filters, but now the supply of aluminum is not necessarily secure.
Kaboomracks, based in Houston, Texas, started selling ASICs in 2017 and is now experiencing a sales boom, advising customers that they have longer than usual lead times of 4 and 5 weeks.
In a recent interview with Bitcoin Magazine, Nick Foster, Vice President of Kaboomracks said:
“We are very overwhelmed. We have more orders per day that we can fulfill per day. We are working and hiring to solve these problems. We often miss orders because we can’t close every sale quickly enough. “
Kaboomracks began trading used ASICs, with the majority of sales going to companies that were starting up. Now Foster estimates that 50% of her sales are currently in retail for potential home mining.
In order to increase the range of ASICs, they have further expanded their sales line for used ASICs, says Foster:
“We have acquired some warehouses and are able to inspect, test and even overhaul the equipment. We also use trusted partners in China to gain access to small quantities of machines and rare and unique machines. “
Scott Offord’s company Scott’s crypto mining based in Wisconsin has been buying and selling ASICs for a number of years, but it wasn’t until this year that the demand for home mining services began to grow.
In response to requests to set up a home mining rig, Offord offers both online guides and in-person training courses.
“Last week in Wisconsin, we ran a one-on-one, intensive, 5-day mining operation training course that was flown in from all over North America. We teach them how to build 1-2 MW farms, ”he told Bitcoin Magazine.
“Right now they’re hobby-level miners, but we’re training them to take it to the next level. The biggest problem in the industry right now is the lack of qualified talent who know how to mine and maintain mines. We are solving that by training the next generation of Bitcoin mining farm owners / operators, ”Offord added.
“Every big player in the mining industry started out as a home miner. Home mining is where it always started. Yesterday’s hobby miner will become tomorrow’s industrial mining company, ”says Offord. “I’m hosting a two-day mining conference at North America’s largest indoor water park in Texas in February 2022. Michael Saylor will speak there and Charlie Shrem will give the keynote. “
Let’s go to 2022
In his year-end interview, Scott Offord sees the mining industry breaking into the institutional and retail sectors in 2022:
“As the institutional mining silo continues to grow, so will home mining continue to grow. Every garage or basement should have a bitcoin miner, ”Offord said.
Despite a steady but sideways price movement in recent weeks, interest rates and profits from mining continue to grow.
Luxor’s Vera realizes that home miners cannot compete with the mega-operations involving thousands of ASICs like Marathon and HIVE, but they are an important stabilizing and decentralizing force for the network, or as Matt Odell said on a recent podcast, “Home Mining makes the network more robust. “
“Bitcoin mining in single family homes was and will be an important part of the network. Although it’s not a large part of the market, it represents the decentralized nature of the network, ”Vera added.
In an interview with Steve Barbour, he told Bitcoin Magazine:
“I’ve always wanted to design a mining enclosure for home miners because I knew the market would one day grow.”
To Barbour’s surprise, the time seems to have come.
“I didn’t expect it to get the response it is getting, so we’re very excited to begin commercial production of the home mining version as well as the small-scale commercial / industrial version of the black box from January and through 2022 “He said added.
Upstream hired home mining activist Econoalchemist, who recently created an in-depth guide on building no-KYC mining at home.
In a recent article, Econoalchemist outlines a series of events that he believes helped put mining on people’s agenda.
What he calls “a small, humble bitcoin mining operation at home with the intent of calculating the dollar cost average (DCA) non-KYC bitcoin on your utility bill.”
His thesis is that people are looking for non-KYC mining to offset the increasing control of Bitcoin by large institutions.
Foster at Kaboomracks isn’t so sure – he sees a lot of people interested in mining but not trying to start a revolution.
The pure joy expressed in many tweets on Twitter and the sense of achievement in founding a home miner can only warm the hearts of the people at Compass, Luxor, Upstream Data, Kaboomracks and Scott’s Mining.
Anything that is so much fun won’t go away anytime soon.